Types of Bonds\n\nContract surety bonds\n- Bid bond — guarantees the bidder will sign at the bid price if awarded.\n- Performance bond — guarantees completion per the contract.\n- Payment bond — guarantees subs, suppliers, and labor get paid (often paired with the performance bond; required on public work via the Miller Act).\n- Maintenance / warranty bond — covers defects for a period after completion.\n\nOther bonds contractors meet\n- License / permit bond — required to get the contractor license in many states.\n- Subdivision / site-improvement bond — guarantees a developer finishes public improvements.\n- Supply bond — guarantees a supplier delivers materials.

Welcome

Hello, and welcome. This is Super Structures General Contractors — a national general contractor headquartered in Powhatan, Virginia — here to help you and your clients build something that lasts. We're glad you're with us, and we look forward to connecting with you.

Let's dig into The Different Types of Bonds. Here's what it really comes down to: Know your bonds: bid, performance, payment, maintenance, license, subdivision, and supply. This is how the pros pull ahead — and now it's yours.

Going Deeper (Intermediate)

The three contract bonds you'll meet:

• Bid bond — guarantees you'll honor your bid and provide the other bonds if awarded.
• Performance bond — guarantees you'll complete the work per the contract.
• Payment bond — guarantees you'll pay your subs and suppliers. Plus license/permit bonds (required to hold a license) and maintenance/warranty bonds (cover the warranty period).

Advanced / Pro-Level

Where bonds really matter:

• On public projects you can't lien public property, so the payment bond is the subs' remedy — the federal Miller Act requires performance + payment bonds on contracts over $150k; state "Little Miller Acts" mirror it.
• Bonds are usually 100% of the contract value; cost is ~0.5–3%, driven by your surety credit.
• You can require subcontractor bonds (subs bond back to you) to transfer risk down on shaky or large subs.
• Claims trigger your indemnity — bonded default is expensive and reputation-damaging.

Practice Challenge

On a $2M federal job, a sub you didn't pay can't lien the building. What's their recourse, and which bond is it? (Answer: they make a claim against your payment bond (Miller Act) — that's exactly why it exists, since public property can't be liened; you then owe the surety under your indemnity.)

In Practice

Bidding a public job, you bring a bid bond; once awarded, you provide performance and payment bonds. Show up not knowing which bond you need and you can't even bid.

Common Mistakes to Avoid

• Not knowing which bond a job requires
• Confusing payment and performance bonds
• Forgetting license/permit bonds for licensing

Takeaway: Know your bonds: bid, performance, payment, maintenance, license, subdivision, and supply.